Galaxy's lithium mine unlikely to reopen

A business analyst says it is extremely unlikely Galaxy Resources' lithium mine, near Ravensthorpe, will ever reopen.

Yesterday, it was announced the facility would be shut indefinitely.

Galaxy says 37 staff would be laid off at the Mount Cattlin mine which was temporarily closed last year due to an excessive stockpile.

The company says it could still re-open but it has reached a three year deal to source lithium from Talison's Greenbushes mine.

Commentator Tim Treadgold says, given Talison's takeover by a Chinese company was approved just a week ago, it appears a range of Chinese companies have worked together to reach an outcome benefiting all of them.

"Galaxy is already a company with a substantial Chinese exposure and ownership, it is now going to source its Australian ore from Talison, which is in the process of being acquired by a Chinese company," he said.

Mr Treadgold says the people of Ravensthorpe will be the big losers.

"Poor old Ravensthorpe has taken another kick in the teeth," he said.

Half the mine's permanent workforce left last year after operations were suspended.

Shire president Ian Goldfinch says it is already difficult to get finance for building projects in the town and the latest redundancies will not help.

"Banks will be looking at houses in Hopetoun that people are trying to finance and houses in Ravensthorpe and saying well, you know, looking at the experience of your town, should we finance anything in your town at all?" he said.

Victoria's laws for disclosing political donations have long been criticised as among the weakest in the nation, but Premier Daniel Andrews says his proposed reforms will make the state's donations laws "the strictest donation laws in the country".